Europe’s Morning MoneyBeat: Pause But No Panic

A strong, four-day global equity rally seems to have petered out and European stocks are expected to nudge lower from the open Thursday as a result.

U.S. investors seemed to run out of reasons to chase their own markets higher in the previous session, and Asian stocks have wilted even more. However, a plethora of apparently dovish statements from major central banks, from Washington to Frankfurt via London, seems to be keeping bulls’ hopes alive.

The European session looks short of obvious catalysts but there are some heavyweight U.S. numbers later, in the shape of January’s retail sales and weekly jobless claims, which will probably dictate direction.

The major market news overnight was a further clobbering for the Australian dollar. It was floored by news that Australian unemployment hit its highest point for a decade in January, a consensus-thrashing 6%.

Bankia to Focus On Loans to SmallBusiness: Chairman José Ignacio Goirigolzarri said the bailed-out Spanish lender plans to focus on boosting loans to small businesses this year to improve profitability and reduce its reliance on returns from residential mortgages.

Pimco’s Gross: BoE Will Hike Before Fed: The vast bond-fund’s co-founder is among a growing chorus of investors and analysts betting on the Bank of England to be the first of the major developed nations to raise short-term interest rates.

Australian Mining Profits Set for China Boost: Commodity prices may have come off the boil and China’s economy cooled, but some of Australia’s biggest mining names are still powering ahead thanks to the No. 2 economy’s still-strong hunger for raw materials.

The Dangers of Central Bank Flipflops on Forward Guidance: Last year, central bankers enthusiastically embraced a new communications strategy: They would set guideposts for when they expected to change future policy so that markets could better price in the likely timing and pace of changes in monetary conditions. Now, little more than a month into 2014, the whole forward guidance thing is out the window,

From The Wall Street Journal

Iran Steadies as Tensions Ease: Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants.

BNP Paribas Hit By $1.1 Billion Legal Provision: The French bankThursday announced an unexpected slump in fourth-quarter profit after it set aside a $1.1 billion provision against possible penalties for allegedly violating U.S. laws that restrict financial transactions with countries under economic sanctions.

Apple Says Suppliers Forego Disputed Metal: The tech giant said it has verified that its suppliers don’t use tantalum—a key metal used in electronic components—secured from sources that use the mineral’s sale to provide funds for violent armed groups in war-torn parts of Africa.